andMr. White asked the Minister for Fisheries and Forestry the plans, if any, he has to provide increased capacity in the timber processing industry to cope with the increased output of State forests.

A study of the timber industry has been carried out by the Industrial Development Authority in co-operation with my Department. Since the study was completed the Industrial Development Authority have approved 27 projects, with a job potential of 463, in the sawmilling sector.

The study of the pulpwood using sector has also been completed and the Industrial Development Authority, in consultation with my Department, have been examining the market prospects for a selected group of products. In view, however, of current difficulties affecting these industries a final selection is not possible at this stage.

Does the Minister agree that there is a serious undercapacity in the timber processing industry?

No. We are now in a position to process all the mature sawn off timber available. We even have requests that we cannot fulfil from people who are anxious to become involved, so I do not think there is any undercapacity.

Surely there is a surplus of forest thinnings which cannot be utilised at present because of lack of processing facilities.

There is a surplus in the thinnings end. Other countries are experiencing the same difficulties with regard to their pulpwood. I am afraid it is not something we can solve overnight. It is engaging our attention.

Are there any plans to set up a chemical pulp mill here?

The IDA are having discussions with companies from different countries in the hope that a pulp mill may be set up here. We cannot give any details of that as there is nothing very definite yet.